Initial Europe ACN September contract settles up €55/tonne

13 September 2013 10:28[Source: ICIS news]

LONDON (ICIS)--An initial European September acrylonitrile (ACN) contract price has been agreed at an increase of €55/tonne ($73/tonne)because of rising upstream costs, the buyer and seller involved confirmed on Friday.

The European propylene contract price for September settled up by €60/tonne to €1,150/tonne FD (free delivered) NWE (northwest Europe), reflecting the firmer feedstock market while taking into account the autumn turnaround season about to get under way.

Coupled with this, ammonia – ACN’s other feedstock – free on board (FOB) Yuzhny spot prices rose by $5-40/tonne between the beginning of August and 6 September, adding further support for contract price negotiations.

“[The price increase is] more or less the cost increase when you take into account the ammonia [price rise],” the producer said.